Increased arrivals of imported copper deepened hydro-copper discounts

SHANGHAI, Mar 4 (SMM) – Transactions of spot copper moderated in Shanghai on the morning of March 4 as suppliers and buyers remained in a deadlock on the back of reduced futures prices. 

Spot sellers kept their discounts at levels in the previous day, which stood at 100-90 yuan/mt, against the SHFE March contract, for high-quality copper and at 120 yuan/mt for standard-grade copper. Discounts of hydro-copper, meanwhile, widened to above 200 yuan/mt as greater amounts of imported cargoes from Norway, Spain, and the US entered the spot market. 

Traders favoured cheap cargoes but the downside room in spot offers was limited as sellers withheld from cutting prices to destock. SMM expects the stagnating spot trades to sustain in the coming session. 

On Wednesday March 4, the SHFE March contract retreated on investors concerns about the global impact of the rapid spread of the coronavirus, and ended the morning trading session 0.68% lower at 45,120 yuan/mt. 

At noon on March 4, high-grade copper traded at 44,990-45,050 yuan/mt and standard-quality copper traded at 44,970-45,040 yuan/mt.